Kenya’s leading telecom giant Safaricom is at the center of a major legal battle that could redefine how artificial intelligence (AI) is used in financial services and customer interactions across the country.
The lawsuit, filed at the High Court, challenges Safaricom’s growing reliance on AI-powered systems in its customer service operations and mobile money platform M-Pesa. The case raises serious concerns about transparency, consumer rights, and the role of automated decision-making in everyday financial life.
What the Lawsuit Is About
The petition accuses Safaricom of deploying AI technologies—such as chatbots and automated decision systems—without sufficient transparency or accountability.
According to court filings, the company’s systems:
- Make financial decisions affecting users
- Provide limited or unclear explanations
- Lack accessible human review mechanisms
The petitioner argues that consumers are often left in the dark when automated systems determine outcomes such as credit limits or service responses.
Why M-Pesa Is at the Center of the Case
The case heavily focuses on M-Pesa, which is deeply embedded in Kenya’s economy. Launched in 2007, the platform allows users to send money, pay bills, access credit, and manage finances directly from their phones.
Because millions of Kenyans rely on M-Pesa daily, any automated decisions—such as loan approvals or transaction limits—can have real-life financial consequences.
Critics argue that when such decisions are made by AI without explanation, users may face:
- Sudden changes in credit limits
- Denied services without clear reasons
- Difficulty resolving disputes
Concerns Over AI Transparency and Consumer Rights
At the heart of the lawsuit is the question:
Should companies be allowed to make important decisions using “black box” algorithms?
The petitioner claims that Safaricom’s AI systems may violate key rights, including:
- Right to privacy
- Fair administrative action
- Consumer protection
There are also fears that automated systems could unintentionally introduce bias or discrimination, especially if users are not given explanations or avenues to challenge decisions.
Legal experts say the case could test how Kenya enforces its data protection laws in the age of AI.
The Bigger Picture: AI Regulation in Kenya
This lawsuit comes at a time when Kenya is rapidly embracing artificial intelligence across sectors such as finance, healthcare, and agriculture.
However, regulation is still catching up.
The case is expected to highlight gaps in oversight, especially as the country works toward implementing its National AI Strategy (2025–2030).
Globally, similar debates are already ongoing, with calls for:
- Greater transparency in AI systems
- The “right to explanation” for automated decisions
- Stronger accountability for tech companies
What the Court Could Decide
The petitioner is seeking several key orders from the court, including:
- Greater transparency in AI decision-making
- Publication of risk assessments
- Systems allowing human review of automated decisions
If the court rules in favor of the petitioner, Safaricom could be required to significantly change how it uses AI—potentially setting a precedent for other companies in Kenya and beyond.
What This Means for Everyday Users
For the average Kenyan, this case could have a direct impact on how digital services work.
If successful, the lawsuit could lead to:
- Clear explanations for M-Pesa decisions
- Better customer support with human oversight
- Stronger protection of personal data
On the other hand, stricter regulations might also increase operational costs for companies, which could affect service delivery.
Final Thoughts
The case against Safaricom is more than just a legal dispute—it represents a turning point in how technology, finance, and human rights intersect in Kenya.
As AI continues to shape everyday services, the outcome of this lawsuit could determine whether innovation moves forward with transparency and accountability—or without it.
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